The market is astonishingly good at solving problems if you make the status quo more expensive than the solution. If we abandoned cap-and-trade in favour of a carbon tax, we would undoubtedly see huge reductions in carbon emissions. The problem with our current system isn't that the market is failing to respond to incentives, but that we haven't set the right price.
I'm a fan of the market system but there are limits. It works well for solving one variable with it but our environmental issues are many and no one has found a business model that works to save it. Also, when the market solves for one issue it goes to extremes and often causes other unintended consequences. The market alone is not the answer but a combination of the market system plus our political system. But in reality it's just a matter of everyone understanding the problem and trying to help. Every resource we take from the environment has an impact no matter the size since it's multiplied by billions.
Markets only work when the government regulating them isn't subject to regulatory capture.
I have reasonable faith that markets could get global warming under control without most people noticing any decrease in their standard of living, quite possibly seeing a big increase.
Getting impatient for people to actually try markets rather than continue the petro-gangster status quo though.